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Optimal Price of Entry into a Competition

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  • Ginzburg, Boris

Abstract

A continuum of agents are choosing whether to enter a competition. Entry is controlled by a firm that charges a price for it. The mass of agents is uncertain. I analyse how the distribution of the mass of agents determines the equilibrium price and the intensity of entry. A shift of the distribution towards more mass initially induces a reduction of price, and later – a reduction in entry.

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  • Ginzburg, Boris, 2019. "Optimal Price of Entry into a Competition," MPRA Paper 96367, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:96367
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    References listed on IDEAS

    as
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    8. Ginzburg, Boris, 2019. "A Simple Model of Competitive Testing," MPRA Paper 94605, University Library of Munich, Germany.
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    Cited by:

    1. Ginzburg, Boris, 2019. "A Simple Model of Competitive Testing," MPRA Paper 99463, University Library of Munich, Germany.
    2. Mark Whitmeyer, 2021. "Submission Fees in Risk-Taking Contests," Papers 2108.13506, arXiv.org.

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    More about this item

    Keywords

    contests; entry; university admission tests;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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